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South Africa is a leading player in the international ferro alloys industry. Historical factors that have con- tributed to this dominant position include an abundance of natural resources and relatively low cost electric- ity. A number of relatively recent developments are potentially threatening this position. These include new legislation affecting the mining and minerals industry, a shortage of some types of suitable reductants, deple- tion of surplus electricity generation capacity with resultant threat of real escalation of electricity prices and pressure resulting from the recent strengthening of the South African Rand. The industry is addressing these challenges in a number of ways to ensure long-term viability. Some of these measures include investments in more efficient technologies that have economy of scale benefits and are less dependent on expensive reduct- ants and electricity. Local macro-economic impacts include new legislation regarding ownership of enter- prises, mineral rights and royalties on mineral sales, development plans for port and rail infrastructure, as well as initiatives to expand electricity generation and coke production capacity.
The fundamentals for being a successful ferro alloy producer are still largely in place for South African pro- ducers. Therefore the South African ferro alloy industry will remain competitive and is well placed for con- tinued growth in line with the international growth in ferro alloy demand. The industry should emerge leaner, more efficient and ready to respond to any future demands of the industry. This paper will cover the present status of the industry, the factors that are impacting thereon and a view on its future outlook.
1. HISTORICAL PERSPECTIVE
The ferro alloy industry in South Africa can i.a. be attributed to the foresight of the late Dr. H. J. van der Bijl who was a pioneer in the exploitation of the mineral wealth of the country by the formation of African Metals Corporation (Amcor) Limited. The company was incorporated on 23 July 1937 and started production of pig iron and high carbon ferromanganese (HCFeMn) in a 10 ft hearth blast furnace in Newcastle, Natal. In 1939 a decision was taken to construct two electric furnaces for the production of ferro alloys in Vereeniging, Transvaal. The first 3 MVA rectangular furnace was commissioned on 15 February 1942 for the production of HCFeMn, followed by a second furnace on 23 April 1942 for ferrosilicon (FeSi) production. Shortly there- after, two 1,2 MVA tilting refining furnaces for the production of medium and low carbon alloys were com- missioned. The plant finally closed down on 29 March 1953. At that time it had produced not only HCFeMn, high carbon ferrochromium (HCFeCr) and FeSi, but also medium and low carbon ferromanganese (M/ LCFeMn), medium and low carbon ferrochromium (M/LCFeCr), ferrotungsten (FeW), ferrotitanium (FeTi), lead (Pb), martensitic 13% Cr stainless steel, low carbon 18/8 austenitic stainless steel and mild steel. The plant was relocated to a site near Meyerton, Transvaal where production commenced on 11 April 1951. This plant is still in operation today and is known as Samancor Manganese’s Metalloys plant.
Highlights in the history of ferro alloy production in South Africa are summarised below.
South Africa’s Ferro Alloys Industry - Present Status and Future Outlook 5
Thus, from very humble beginnings in 1918, the South African ferro alloy industry has prospered and grown to become a leading producer of bulk ferro alloys on a global scale. Details of the present ferro alloy industry in South Africa are found in the next section.
2. THE CURRENT STATUS OF THE INDUSTRY
The summarised capacity of South African ferro alloy plants is shown in Table 1.
Table 1: Installed Capacities of SA Ferro Alloy Plants
|
Operating Company |
Production Units |
Capacity (tpa) (excludes feed to refined products) |
|
Samancor Cr Ferrometals |
2x25MVA semi-open AC 1x48MVA semi-open AC 1x63MVA semi-open AC 2x63MVA closed AC |
Primary ChCr 400 000 Recovery ChCr 20 000 |
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1x30t CLU converter |
MCFeCr 70 000 |
|
Samancor Cr Middelburg Ferro- chrome |
2x48MVA semi-open AC
1x63MVA closed DC |
Primary ChCr 220 000
Recovery ChCr 10 000 |
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|
1x18MVA open arc AC 2x18MVA semi-open AC |
LCFeCr 40 000 |
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Samancor Cr Tubatse Ferro- chrome |
3x30MVA semi-open AC
3x37MVA semi-open AC |
Primary ChCr 340 000
Recovery ChCr 20 000 |
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Mogale Alloys |
1x40MVA closed DC 2x20MVA semi-open AC Alt: 2x20MVA semi-open AC |
Primary ChCr 120 000 Recovery ChCr 5 000 SiMn 40 000 |
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Samancor Mn Metalloys |
2x18MVA semi-open AC 1x21MVA semi-open AC 2x25MVA semi-open AC 2x75MVA closed AC 1x81MVA closed AC |
Primary SiMn 120 000 Recovery SiMn 5 000
Primary HCFeMn 300 000 Recovery HCFeMn 10 000 |
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1x30t converter |
MCFeMn 60 000 |
|
Siyanda Inkwali Resources DMS Powders |
1x12MVA open AC |
14/16% FeSi 36 000 |
|
Xstrata Alloys Lydenburg |
3x33MVA closed AC 1x38MVA semi-open AC |
Primary ChCr 380 000 Recovery ChCr 20 000 |
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Xstrata Alloys Lion |
2x60MVA closed AC |
Primary ChCr 340 000 Recovery ChCr 20 000 |
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Xstrata Alloys Rustenburg |
5x33MVAsemi-open AC 1x45MVA semi-open AC |
Primary ChCr 410 000 Recovery ChCr 20 000 |
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Xstrata Alloys Wonderkop |
6x45MVA semi-open AC |
Primary ChCr 440 000 Recovery 20 000 |
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Merafe Boshoek |
2x60MVA closed AC |
Primary ChCr 230 000 |
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Recovery ChCr 10 000 |
|
Glencore Siltech |
1x51MVA semi-open AC 1x40MVA semi-open AC |
75% FeSi 40 000 |
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Assmang Chrome Machadodorp |
1x54MVA closed AC 2x33MVA semi-open AC 1x30MVA semi-open AC |
Primary ChCr 285 000 Recovery ChCr 15 000 |
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Assmang Manganese Cato Ridge |
1x24MVA semi-open AC
1x24MVA closed AC 2x22MVA semi-open AC 2x12MVA closed AC |
Primary HCFeMn 180 000
Recovered HCFeMn 15 000 |
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1x30t converter |
MCFeMn 50 000 |
|
Hernic Ferrochrome |
2x37MVA semi-open AC 1x54MVA closed AC 1x78MVA closed AC |
Primary ChCr 410 000 Recovery ChCr 20 000 |
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ASA Metals |
1x33MVA semi-open AC 1x45MVA semi-open AC |
Primary ChCr 115 000 Recovery ChCr 10 000 |
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International Ferro Metals |
2x66MVA closed AC |
Primary ChCr 250 000 Recovery ChCr 10 000 |
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Highveld Steel Transalloys |
2x21MVA open AC 1x23MVA semi-open AC 2x48MVA semi-open AC |
Primary SiMn 150 000 Recovered SiMn 10 000 |
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2x7MVA open arc AC |
MCFeMn 50 000 |
|
Highveld Steel Rand Carbide |
1x20MVA semi-open AC 1x46MVA semi-open AC 1x16MVA semi-open AC |
75% FeSi 60 000 |
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Invensil Silicon Smelters |
3x30MVA semi-open AC |
Si metal 40 000 |
|
Xstrata Alloys Rhovan |
1x3,5MVA DC |
FeV 5 500 |
|
Highveld Steel Vanchem |
2x3MVA AC |
FeV 7 000 (theoretical) |
|
Stratcor Vametco |
Not defined |
FeV 2 000 - 6 000 (potential) |
The South African ferro alloy industry is experiencing interesting changes in terms of ownership and restructuring. This reflects an increasing interest from non-South African organisations in the investment and strategic potential of the business. This is a far cry from 20 years ago when the ferro alloy industry was basically dominated by Samancor, MS&A and Highveld Steel.
South Africa’s Ferro Alloys Industry - Present Status and Future Outlook 7
The major growth and activity has recently been in the ferrochromium industry. The manganese initiatives may lead to significant investments in the near future, which would change the South African manganese landscape significantly. Expansion plans for Xstrata’s Rhovan vanadium operation have recently been an- nounced[1].
Primarily as a result of the abundance of good quality raw materials (ores, reductants and fluxes), cheap electricity, a well-developed infrastructure and relatively cheap capital, South Africa’s ferro alloys industry has burgeoned over the last five decades to become the world leader in ferrochromium production, a major exporter of manganese ore and alloys and a significant producer of vanadium products. In addition, ferrosilicon of different grades as well as silicon metal are produced. South Africa is also a producer and exporter of Söderberg electrode paste.
At the moment, there are seven ferrochromium producers viz. Samancor Chrome, Mogale Alloys (produc- ing ChCr and SiMn in campaigns), Xstrata Alloys/Merafe, Assmang Chrome, Hernic Ferrochrome, ASA Metals and International Ferro Metals. The major producers have plants in more than one location.
By early 2007 the gross installed annual ChCr capacity (including feedstock to refined products and reclaimed alloy from slag dumps) would be in the order of 4,2 million tonnes.
Major ferrochromium expansion projects in South Africa are in the pipeline. Xstrata Alloys/Merafe is well advanced with the construction of a major green field ferrochromium plant, Lion Ferrochrome, at the site of the Vantech plant near Steelpoort, which incorporates two submerged arc electric furnaces, based on the patented Premus technology. Provision has been made to treble this first phase capacity to 1 million tonnes of ferrochromium by 2015[2]. In addition, International Ferro Metals will commission their green field, two- furnace smelter near Brits in the North West Province early in 2007. This plant has a reported capacity of 267 000tpa[3]. Samancor Chrome has announced a planned investment of US$1,46 billion to double its charge chrome capacity by early in the next decade. Construction of the first phase of 500 000 tpa green field plant is planned to commence in 2007, in addition to 260 000tpa brown field expansions presently underway[4]. Tata Steel’s project for a 135 000tpa HCFeCr plant in Richards Bay should be completed towards the end of 2007[5]. They already plan to double this plant’s capacity as the next stage[6]. ASA Metals plans to triple its charge chrome output by 2008[7].
In contrast to ferrochromium production, South Africa is a relatively small player in manganese alloy production with only three producers and one swing producer. Of the three, Samancor Manganese is the largest (Metalloys, Meyerton), followed by Assmang Manganese (Cato Ridge) and Highveld Steel (Transalloys, Witbank) with Mogale Alloys (formerly Palmiet Ferrochrome) as the swing producer. As most plants have the possibility to switch between HCFeMn and SiMn, production capacities are flexible. However, the nominal annual capacities, excluding Mogale, are as follows (including feedstock to refined products):
• SiMn 300 000 t
8 INFACON XI
In terms of manganese alloy capacity the most significant development was the announcement by Kumba Resources and Samancor Manganese of their joint feasibility study for a 200 000tpa HCFeMn project based on a new process, developed by Kumba Resources’s AlloyStream technology. Furthermore, after the recent allocation of manganese ore mineral rights, a number of potential new entrants have embarked on feasibility studies for investment into new manganese ore mining and alloy production facilities.
Ferrosilicon production is small with production mostly for the local market. Rand Carbide (division of Highveld Steel) and Siltech are the only producers of 75% FeSi with a combined estimated annual production capacity of 100 000 tonnes. DMS Powders produces 14/16% FeSi for dense media separation. The only silicon metal producer is Silicon Smelters in Polokwane, part of the Ivensil Group, with an estimated annual capacity of 40 000 tonnes. Apart from low electricity cost, South Africa’s competitive benefits to produce silicon alloys are limited.
There are three producers of vanadium based products in South Africa viz. Xstrata Alloys (Rhovan) in Brits, Vanchem (division of Highveld Steel) in Witbank and Vametco, a division of Stratcor, also in Brits. Vametco has the capacity to produce 4 500 t/a Nitrovan®[8], which can be switched to FeV, while the other producers have the capacity and flexibility to produce a range of vanadium products and can vary production between V2O5, V2O3 and FeV. It is thus difficult to estimate the capacity of FeV. The market was in a state of flux at the time of writing, as it had just been announced that the Russian producer, Evraz would effectively purchase the majority stake in Highveld Steel and Vanadium from Anglo American, having also recently acquired Stratcor, which owns Vametco.
South Africa has vast reserves of chromite, manganese ores and vanadiferous ores. This position makes South Africa unique in the world.
The latest USGS (United States Geological Survey)[9] cites the world resources of chromite as being greater than 12 billion tonnes of shipping-grade chromite, sufficient to meet conceivable demand for centuries. About 95% of the world’s chromium resources are geographically concentrated in Kazakhstan and southern Africa. Shipping-grade chromite ore is defined by the USGS as the deposit quantity and grade normalized to 45% Cr2O3. The total global chromite reserves (shipping-grade) are estimated by the USGS at ~474 million tonnes.
According to Cramer et al[10] South Africa’s chromite reserves probably exceed 75% of the world’s eco- nomic resources. All the chromite in South Africa is located in the BIC (Bushveld Igneous Complex). The economically viable seams are the LG6 (lower group 6) with a Cr/Fe ratio of 1,5-2, the MG1/2 (middle group 1 & 2) with a Cr/Fe ratio of 1,5-1,8 and the UG2 seam (upper group 2). The UG2 with a Cr/Fe ratio of 1,3- 1,4 is primarily a source of platinum group metals (PGMs). However, with technological innovations (DC plasma arc smelting, improved chromium yields) UG2 is gaining acceptance as source of chromium for ChCr production. Thus, South Africa’s chromite reserves can meet increased demands to meet the rapid escalation of ferrochromium production for an almost indefinite period[11].
It should be noted that the South African in situ chromites are generally low grade (<45% Cr2 O3) and low ratio (Cr/Fe<1,6) and are generally friable. The resultant alloys produced from these ores are ChCr, with Cr- content of typically <55%. There is also a general requirement for agglomeration of the ore to render it suitable for efficient charge chrome production. The production of ChCr with lower Cr content also impacts adversely on transport costs per Cr unit.
As with chromite, South Africa has extensive deposits of manganese ore, mostly concentrated in the Kalahari Manganese Fields in the northwestern region of the country. Again, quoting the USGS[9], South Africa has about 80% of the world’s identified resources.
- [Editor:张德众]
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